Evaluating the operating efficiency of joint-stock commercial banks in Viet Nam through the restructuring period

This article assesses the performance of joint-stock commercial banks in Vietnam throughout a two-phase restructuring project according to Decision No. 254 / QD-TTg and No. 1058 / QD-TTg of the Prime Minister. The data is mainly collected from consolidated financial statements and annual reports of...

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Bibliographic Details
Published in:Journal of Eastern European and Central Asian research 2022-06, Vol.9 (3), p.399-408
Main Authors: Nguyen, Hang Thi Hai, Nguyen, Minh Vu Thao
Format: Article
Language:English
Subjects:
Annual reports
Bank technology
Banking
Banking industry
Branch banking
Commercial banks
Consolidated financial statements
Data envelopment analysis
Efficiency
Efficiency index
Measurement
Productivity
Variables
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Summary:This article assesses the performance of joint-stock commercial banks in Vietnam throughout a two-phase restructuring project according to Decision No. 254 / QD-TTg and No. 1058 / QD-TTg of the Prime Minister. The data is mainly collected from consolidated financial statements and annual reports of 31 joint-stock commercial banks from the period of 2011–2020. The study approaches data envelopment analysis measurement – DEA and Tobit censored regression models - to evaluate operational efficiency. The results illustrate that banks utilize their input resources effectively with an average technical efficiency index of 90.7%. Moreover, considering scale-down efficiency (DRS) is essential, leading to the need to diversify banking services (especially the non-credit segment) to disperse risks in the operation process instead of only concentrating on traditional credit activities.
ISSN:2328-8272
2328-8280
DOI:10.15549/jeecar.v9i3.815